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Helping a First Time Buyer.
HeyHeyMyMy
Posts: 37 Forumite
My girlfriend and I are hoping to buy our first house next year.
I've had some credit problems in the past - default notices, debt collectors etc, but no CCJs. All issues now resolved, all debts paid or repayments being paid regularly.
That was 12 months + ago and since then I have been paying everything on time and have a lot more disposable income - got a higher salary and made a lot of cut backs.
I earn an annual salary of £24,000. Monthly, after paying for my car, insurance, loan to pay debts, phone, gym I have approximately £1100 left, however an element of this would have to be used for petrol, nights out etc. Petrol = £80ish Nights out per month = £200ish. Leaving a grand total of £820, let's say £800 for arguments sake.
My girlfriend gets an annual salary of £12,000, but get's quite good bonuses. Monthly she never comes out with less than £1000 and has no other financial commitments other than the gym also. Her travel costs per month are approximately £100 and she too would like to retain here social life - say, again, £200 per month = £670 remaining.
My questions are as follows:
1) Following my poor credit history, would we struggle in getting a mortgage? We would be looking to put down a 10% deposit on any house we did buy if this would help? Would we get stung with high interest amount? My parents are willing to assist and have good credit and are financially comfortable - could they be "utilised" (for want of a better word) without incurring any costs themselves?
2) Looking at my very rough projections above - would we be able to afford it or realistically would we find ourselves in over our heads?
3) We've considered renting for a short time to see how we 'cope' financially, is it likely we'd have difficulty renting following my poor credit history? Is it just dead money?
Thanks in advance for any help - as you can probably tell I have very limited knowledge in this area and any advise greatly received.
I've had some credit problems in the past - default notices, debt collectors etc, but no CCJs. All issues now resolved, all debts paid or repayments being paid regularly.
That was 12 months + ago and since then I have been paying everything on time and have a lot more disposable income - got a higher salary and made a lot of cut backs.
I earn an annual salary of £24,000. Monthly, after paying for my car, insurance, loan to pay debts, phone, gym I have approximately £1100 left, however an element of this would have to be used for petrol, nights out etc. Petrol = £80ish Nights out per month = £200ish. Leaving a grand total of £820, let's say £800 for arguments sake.
My girlfriend gets an annual salary of £12,000, but get's quite good bonuses. Monthly she never comes out with less than £1000 and has no other financial commitments other than the gym also. Her travel costs per month are approximately £100 and she too would like to retain here social life - say, again, £200 per month = £670 remaining.
My questions are as follows:
1) Following my poor credit history, would we struggle in getting a mortgage? We would be looking to put down a 10% deposit on any house we did buy if this would help? Would we get stung with high interest amount? My parents are willing to assist and have good credit and are financially comfortable - could they be "utilised" (for want of a better word) without incurring any costs themselves?
2) Looking at my very rough projections above - would we be able to afford it or realistically would we find ourselves in over our heads?
3) We've considered renting for a short time to see how we 'cope' financially, is it likely we'd have difficulty renting following my poor credit history? Is it just dead money?
Thanks in advance for any help - as you can probably tell I have very limited knowledge in this area and any advise greatly received.
0
Comments
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You ought to be able to get a mainstream mortgage but how much were you looking to borrow?I like to give people as many choices as possible to do what I want them to. (Milton H Erickson I think)0
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Mr_helpful wrote: »You ought to be able to get a mainstream mortgage but how much were you looking to borrow?
We'd struggle getting anything for less than £120,000 in our area. £120,000 - 10% - £108,000.0 -
I would have thought that possible with one or two lenders.HeyHeyMyMy wrote: »We'd struggle getting anything for less than £120,000 in our area. £120,000 - 10% - £108,000.I like to give people as many choices as possible to do what I want them to. (Milton H Erickson I think)0
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